Question: (6) Some fixed-rate CMBS securitizations may include floating-rate tranches, an apparent contradiction. This conversion is accomplished by means of an _______________________. (7) A CMBS issuance

(6) Some fixed-rate CMBS securitizations may include floating-rate tranches, an apparent contradiction. This conversion is accomplished by means of an _______________________. (7) A CMBS issuance is $1,000,000,000, of which the AAA tranches total $850,000,000of principal balance, the AA tranche is $45,000,000 and the Single A tranche is $45,800,000. What is the subordination level of the AAA tranche? (a) _______ What is the subordination level of the Single A (A) tranche? (b) ________. (8) The basis for the assigned ratings of the first CMBS securitizations was the economic conditions in the commercial real estate markets in the United States during what era? ___________ (9) High ____ (DSCR/LTV/Interest Rate) is the best predictor of high loss severity (loss given default) if a mortgage defaults. (10) A low ____ (DSCR/LTV/Interest Rate) is the best predictor of a default during the loan term. (11) The document that governs the relationship between the A-Note holder and the B-Note holder of a first mortgage is the called the __________________. (12) A Real Estate Mortgage Investment Conduit (REMIC) is a non-taxpaying entity that owns mortgages and issues bonds. What U.S. government agency oversees the REMIC Rules? _____________

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